G ökçe B. Laleci Ertürkmen SRDC Ltd. Turkey

Workshop 6g, 23 October 2008 eChallenges e-2008 Copyright 2008 <ıSURF>

iSURF -An Interoperability Service Utility for Collaborative Supply Chain Planning across

Multiple Domains

Gökçe B. Laleci Ertürkmen

SRDC Ltd.

Turkey


iSURF Project Consortium

FP7 Objective ICT-2007-1.3: ICT in support of the networked enterprise

Project Officer: Cristina Martinez Duration: 30 Months, Start: 01/02/2008 iSURF Contact Details:

Prof. Dr. Asuman Dogac, Coordinator, [email protected] http://www.isurfproject.eu/


Motivation, problem area

• SMEs, should be more agile, self-sustainable and responsive to the changes in the supply chain– should be also addressed by the entire chain jointly

• The supply chain partners should collaborate more effectively realizing the “the network is the business” vision

• The distributed intelligence of multiple trading partners needs to be collaboratively exploited in the planning and fulfillment of customer demand in the supply chain

• Knowledge is the main instrument to drive and support collaboration


Research Objectives

• Do the European companies especially SMEs have the necessary infrastructure ready to collect the real-time supply chain visibility data– iSURF open Smart product Infrastructure

• Are supply chain collaboration processes ready to be deployed in integration to existing enterprise legacy systems? – iSURF Service Oriented Collaborative Supply Chain Planning Process

Definition and Execution Platform

• Is there a standard representation model for exchanging planning data across multiple domains?– iSURF Semantic Interoperability Service Utility

• Do we have necessary infrastructure to enable dynamic transient supply chain relationships to let the European SMEs be agile and ready to react changing requirements of the supply chain? – iSURF Global Data Synchronization and Transitory Collaboration Service Utility


Research approach, Methodology


iSURF open Smart Product Infrastructure for SMEs


iSURF open Smart Product Infrastructure for SMEs

Piacenza

ESB

Legacy Applications Legacy WS

Reader Reader Reader

JBI

SPMiddlewareSPCommunication

Platform

SPQueryEngine

SPRepository

SPPublisher

SPBARegistry

SPClientRegistry

SPSensorRegistry

SPDataIntegratorModule

SPBus

EPCIS Query Interface

Manufacturing Packaging Warehouse

JBI

EPCIS / ALE

Reader Reader Reader

SPClient

Manufacturing Packaging Warehouse

Retailer

JBISPClient


Service Oriented Collaborative Supply Chain Planning Process Definition and Execution Platform

• Collaborative Planning, Forecast and Replenishment (CPFR) Guidelines– By VICS (Voluntary Inter-industry Commerce Standard)– A reference model providing a general framework for the collaborative

aspects of planning, forecasting and replenishment processes• formalizes the processes between two trading partners used to agree

upon a joint plan and forecast, monitor success through replenishment, and recognize and respond to any exceptions

• Regularizes efficient exchange of forecast data– Advantages

• Reduced forecast error• Increased sales• Shorter replenishment lead times• Visibility into consumer buying trends / patterns


•Collect/analyze POS data •Identify planned events (promotions, holidays)•New products/changes•Inventory strategies•DC Withdrawals•Capacity limitations•Manufacturer’s historical demands/shipments•Item management data


Successful CPFR Applications

• Based on “Euopean CPFR Insights” report• Pilot applications for Collaborative planning

– Condis, Delhaize, Elgeka, Eqos, Heinz, Hellas Spar Veropoulos, Henkel, JDA, Johnson &Johnson, Ketjuetu, Kimberley-Clark, Kraft, Marks & Spencer, Masterfoods, Nestlé, ONIA-NET, Procter & Gamble, SCA, Superdrug, Syncra

– involved companies in collaborative planning activities achieved 15% increase in forecast accuracy, reduced their inventory by 13.3% whilst increasing on-shelf availability by 7%

• eChO project of STMicroElectronics aiming to optimize the supply chain planning, – inventory levels have dropped from four weeks to two weeks for both

ST and its trading partners– contract costs were reduced by 50 percent, and 80 percent of all

manual transactions were eliminated


Disadvantages of CPFR

• Deployment of CPFR processes within a supply chain consortium is too costly and labor intensive– A lot of optionalities, many different realizations of the process possible– iSURF will provide CPFR building blocks for binary collaborations– Collaboration processes can be created graphically reusing these building

blocks• CPFR does not mandate the messaging standards to be used in the

collaboration process Hampers the scale of CPFR processes– iSURF will support CPFR through Interoperability Service Utility

• CPFR is technology independent: – It does not provide any guidelines on how the internal planning processes

mostly implemented by legacy enterprise planning systems will be integrated with the joint CPFR collaboration process

– iSURF will enable integration with Legacy Application through SOA


Collaborative Business Process

Design Toolcc

Binary planning processTemplates in ebBP

Binary planning processTemplates in ebBP

Enables SMEs to graphically design

their CPFR Process

Collaboration Business

Process in ebBP

SOA based Legacy Migration Tool

ERP

APS

VMI

Interoperability Service Utility

GS1OAGIS

Proprietary

GDSSU and Transitory Collaboration

Retailers

Manufacturers

Distributors

ConfiguresConfigures Configures

Enables integration with Legacy

Systems

Enables consumption of diverse message

standards

Enhanced exception Handling

Collaborative Business Process

Execution &Monitoring Tool

Creates multiple executable BPEL

Definition


iSURF Semantic Interoperability Service Utility

• Various standard initiatives addressing the standardization of communication in exchanging the supply chain planning information in different domains

– RosettaNet, OAGIS, CIDX, GS1 eCOM (including GS1 EANCOM EDI messages and GS1 BMS XML messages)

• When companies involving in more than one supply chain need to exchange this planning information across multiple domains, we face an interoperability problem to be addressed


UN/CEFACT Core Components Technical Specification

• Traditionally, standards for the exchange of business data have been focused on static message definitions that have not enabled a sufficient degree of interoperability or flexibility A more flexible and interoperable way of standardizing Business Semantics is

required

• The Core Components methodology provides a way to identify, capture and maximize the re-use of business information to support and enhance information interoperability across multiple business situations

• All semantic standardization is done in a syntax-neutral fashion

• Problem– UN/CEFACT Core Components Library (CCL) 07A– Universal Business Language (UBL) 2.0– Open Applications Group Integration Specification (OAGIS) 9.0– Global Standards One (GS1) XML

• All of them use CCTS differently!!• Results in different schemas for nearly same information content

– Degregates interoperability


Interoperability Problem


iSURF Semantic Interoperability Service Utility


Example & Heuristic Rules

Heuristic Rules are defined to semantically equivalent but structurally different schemas


Methodology

Source XMLInstance

Source OWLInstance

DATA LEVELKNOWLEDGE LEVEL DATA LEVEL

Target XMLInstance

Target/SourceXSD

Document Schemas

Upper Ontologies

Knowledge Base Rule

Engine & Reasoner

RULES

XSLT Definition

Harmonized Ontology

EqualityRelations

SubsumptionRelations


iSURF Contribution to Standards

• OASIS Semantic Support for Electronic Business Document Interoperability (SET) Technical Committee– http://www.oasis-open.org/committees/tc_home.php?wg_abbrev=set

– Requirements for Semantic Support for Electronic Business Document Interoperability

– Draft Deliverable for Semantic Support for Electronic Business Document Interoperability

• The SET XSD-OWL tool converts a CCTS based document schema into OASIS SET TC OWL Definition and is publicly available from http://www.srdc.metu.edu.tr/iSURF/OASIS-SET-TC/tools/OASISSET.zip


iSURF Semantic Interoperability Service Utility – Legacy Interface


iSURF Global Data Synchronization and Transitory Collaboration Service Utility

• A semantic infrastructure– Facilitate establishing transitory supply chain planning collaborations in case of

exceptions– Allow the registration, discovery and negotiation of partner’s current trade interests and

availability information and their reputation in trusted relationships. • Trading partners can dynamically discover matching trading partners for a specific need

within a trusted environment • The Global Data Synchronization Network (GDSN) will be exploited

– A network that connects data pools, which are regional sources of manufacturer and retailer data, to the GS1 Global Registry

– The GS1 Global Registry lets companies locate source (manufacturer) or recipient (retailer) data pools so data is standardized and synchronized for trading partners on a near real-time basis

PiacenzaRetailer

ESB

GR

RDPSDP

GDSSU

DPS GUIDPR GUI

1a.RegisterToGDSSU 3.a RegisterToGDSSU

4.a searchRequest

5. a Subscribe to specific product/ company/

catalog

Legacy WS

7. Catalog item notifocation /

Item change notification

Legacy WS

2.a Publish product6.aUpdate/unpublish

product

1b.RegisterToGDSSU2.b Publish product

6.b Update/unpublishproduct


Overall Architecture

ESB

Legacy Systems

Smart Product Module

ISU

TransitoryCollaboration

SU

Real time visibility data

POS Data, Inventory Status CPFR messages….c

Retailer

Legacy SystemsPiacenza

Order Forecast, Sales Forecast

Exception Notification

New Partner Search


Overall Architecture

ESB

Legacy Systems

TransitoryCollaboration

SUGDSSU

CPFR Execution

Exception Notification

Partner Search

Initiate Negotiation

CPFR Designer

Design new CPP

Negotiation


iSURF Pilot Application

• The Fratelli Piacenza iSURF pilot application aims – Demonstrating how iSURF solutions facilitate collaboration in the cross-sector (chemical

sector, textile sector, apparel sector, retail sector and recycling sector) textile clothing supply chain

– Demonstrating how product identification techniques integrated with collaborative planning tools could dramatically improve the efficiency and the effectiveness of this supply chain

• Piacenza will be the coordinating actor in supply chain planning environment composed of Piacenza and its supplier SME network

Fibre Thread FabricFinished

Fabric

Clothing(Fashion &Function)

Distribution /Retail

privateUse

Textile IndustryChemicalIndustry

ApperalIndustry

Retail

Service Provider

Disposal

Recycling


http://www.isurfproject.eu/

Thank you for your attention

Dr. Gokce B. Laleci

SRDC

G ökçe B. Laleci Ertürkmen SRDC Ltd. Turkey

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